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Football: Man United predict record revenue for 2017
[LONDON] Manchester United predicted a record rise in annual revenue to between £560 million (S$1.01 billion) and £570 million (S$1.03 billion) in their latest quarterly financial figures released on Tuesday.
United had previously told investors to expect revenue of between £530 million and £540 million for the 2016-17 financial year.
Broadcast revenue for the quarter rose by 12.9 per cent to £31.4 million, largely due to the Premier League's new bumper television rights deal taking effect.
"We are forecasting better full-year financial performance than expected and as such have raised our revenue and profit guidance for the year," said United executive vice-chairman Ed Woodward in a press release.
"We look forward to a strong finish to 2016-17, both on and off the pitch." United failed to qualify for this season's Champions League, but their exploits in the Europa League have helped them to record strong financial results.
They have won the League Cup in Jose Mourinho's first season as manager and will face Ajax in the final of the Europa League, the only tournament they have never won, on May 24.
They must win the Europa League to qualify for next season's Champions League, having failed to secure a top-four finish in the Premier League.
United will see a 30 per cent reduction in their sponsorship deal with Adidas - a loss of £21 million - if they do not reach the Champions League, spread out over the remaining eight years of the contract.
Despite that, Mr Woodward told investors in a conference call that United have made "tremendous progress on and off the pitch" under Mourinho.
United will receive 6.5 million euros in prize money if they win the Europa League and 3.5 million euros if they lose the final.
The club's operating expenses rose 27 per cent to £129.8 million, partly due to the contracts offered to new signings including Paul Pogba and Zlatan Ibrahimovic.
United also hired a significant number of new non-playing staff members.
Net debt rose by £17.6 million to £366.3 million, which the club said was due to the strengthening US dollar.